Robert N. asked:


A car donation is when you donate your old car to charity. This donation is usually channeled through car donation services, which are non-profit organizations with the sole purpose of handling donated cars to charity programs for affiliated charitable institutions.

Convenient and Cost-Free Donation

If you are planning to sell an old car, you’ve probably been asked to check donate car to charity programs. Yet, you are probably asking why you should donate car to charity. Why not just sell the car instead? Although you do not get money in return for your car when you donate car to charity, you will be saved from all the tedious task of selling your car. With donate car to charity programs, you will experience the convenience and speed of getting rid an old car. Donate car to charity programs makes donation as easy as possible for you by handling every task and paperwork there is.

When you go for donate car to charity programs, the first and last thing you will do is to contact a car donation services. Within 24 to 48 hours, this service will pick up your car, hand you a receipt in return and take care of the rest of the donation process. Donate car to charity programs have three ways of handling donated cars: (1) sell the car at auctions, (2) assigns the car for use of a family or individual or (3) use the car for their charitable operations. When the first option is used, the proceeds from the sale are used for charitable causes, so you are sure that you help the needy whatever way your car is used.

Recipients for donate car to charity programs may vary depending on the causes that the charitable institution supports. Their causes may vary from helping typhoon or hurricane victims, disabled people, battered individuals, homeless individuals or cancer patients. If you are inclined to a particular charity cause, you may want to go with a donate car to charity program that supports it. If not, inquire if your supported charitable cause can be accommodated.

Aside from convenience and being able to help those in need, donate car to charity programs will save you from any expenses. Car donation services accept all kinds of cars in any condition so you will not need to refurbish your car. And since cars are sold at auctions, you will be saved from advertising expenses as well. Donate car to charity programs doesn’t only spells convenience but cost-free as well.

Earn Tax Savings

Moreover, you benefit from a tax break or savings when you go for donate car to charity programs. The federal government allows tax deductions from car donations to charity. Typically, the tax deduction is equivalent to the gross sales amount of the donated car but is not entirely limited to this. The fair market value, which is usually a bigger value, can be used as a tax deduction provided that these two conditions are met: (1) when the donated car is used directly for charitable causes and (2) when improvements are made on the car.

Going for donate car to charity programs will definitely save you from the complexities and hassles of selling your car. But before you contact and car donation services and donate to charity, there are a few things you have to consider. To make sure that the non-profit organization offering the donate car to charity program has a legal personality, look for a 501(c) (3) charity organization classification.

David Scott Foley asked:


Planning to donate a car for kids? Follow the IRS guidelines and get tax benefits but, see that you qualify for tax exemption. Make sure the process of donation process is hassle free and the right market value of car for kids. Following are the tips for car donations for kids:

• Avoid middlemen: they earn 50 to 90 percent value of the car. Directly check with reliable charities if they accept directly the car donations for kids.

• Find an authentic charity: study their track records.

• Check the amount: Find the value of the car donation for kids to be given to charity.

• Know the charity’s status: to avail tax exemption, the charity you choose must be an IRS- 501c (3) approved.

• Delivery: After selecting an authentic charity, it will hire someone to tow your car. But if you deliver the car yourself the charity will save that money.

• Careful Transfer: Reduce the traffic violations and parking tickets risks and after car donation for the kids by re-titling the car in the name of charity.

• Ask for the receipt: If the value of car is above $500, the IRS will check how much the charity earned from it. So get the receipts mentioning how much amount it earned from charity. Sale price proof is not required if the car is kept by charity for charitable work or if car the value of car donation is less than $500.

• Keep track of papers: If your car donation is above $500, you have to attach Form 8283 of IRS for tax return. If it is above $5,000, the documents should have an appraisal. You’ll need evidence of the car donation for kids - a receipt issued by charity and transfer copy of the title.

• Check all details: The papers might look confusing so, make sure the charity gets highest benefit and you get highest tax exemption.

Donate Car for Kids

Children are our future. Making a difference to children’s life for the better is always a noble deed. Donate an old car for kids to a reliable charity. The charity’s car donation for kids program will tow the car from any place in U.S. and you will get a tax exemption benefit. The charity gets a source of income to support a child in need. Car donations for kids programs are accepting usable and not-usable cars. Some of them are re-sold, and some are sold partly, and all earn profits to be used for paying for a child’s education, guidance, food, clothing and, summer programs.

Helen Hecker asked:


In the past few years many charities have found they can raise money through car donation programs and provide you with a car donation tax deduction. These programs can be a goldmine and the charity can make a lot of money for its charitable activities. They stand to make a lot more money if they do all the management themselves. However they must manage it correctly.

Many charities prefer to hire companies that specialize in handling car donations. They charge fairly high fees however. In some cases the charity may only earn 60 cents on the dollar or less, for example.

Most people have no idea that the charity actually ends up with a lot less money than they think. The donor may never find out exactly what this figure is.

If you’re thinking about donating a car, truck, RV, boat, or any other vehicle to get a good tax deduction, you’ll want to check the charity out thoroughly first. Call them up and ask if they handle their own program or if it’s farmed out to one of the many charitable car donation programs. You may have a specific charity in mind.

This doesn’t mean you shouldn’t go ahead if they don’t handle it themselves but just know they won’t end up with all the money either. Many charities are not in a position to do the management and all that’s entailed in handling the vehicles.

Don’t be afraid to ask the charity a lot of questions. You want to be certain you know how much the charity will receive and what they plan to use it for. Sometimes charities sell the vehicle and don’t actually get a lot of money for the vehicle. Sometimes it’s given to a needy person. Sometimes it’s used to transport charity goods to and from various locations. Find this out if this is important to you.

There are many well-known charities that are looking for charitable car donations. You want to ask these charities these same questions also. These charities include Target, Purple Heart, Kidney Foundation and Goodwill Industries for example. There are many others. Many charities have their own used car lots and have salesmen selling the donated vehicles.

If you donate using one of the charity car donation programs instead of working with the charity, you need to know they handle the donated cars, trucks and other vehicles for several or many charities not just one.

Make sure you proceed carefully if you decide to donate your car or other vehicle. It’s a good way to support a charity, or your favorite charity if they have a program, and provide you with a great car donation tax deduction. Just make sure you know that the donation may not end up bringing in the amount of money you might think, if it’s sold.